Rocket Mortgage is one of the top mortgage lenders in the U.S., in terms of rates, loan offerings and customer service. Quicken Loans, its parent company, is the largest online mortgage lender, affording Rocket Mortgage many more resources than much of its web-based competition. Possibly because of the online nature of the business, though, its interest rates are very good, even when compared to some of the largest traditional lenders.
While Rocket Mortgage has all the typical loans you’ll normally find across the market, such as jumbo, VA, fixed-rate and adjustable-rate mortgages (ARMs), it does have a unique in-house offer. If you don’t have much for a down payment, the YOURgageSM 8- to 30-year mortgage affords you the chance to get a loan for up to 97% of your home’s value, leaving you with a minuscule down payment of 3%.
| Mortgage | Interest Rate | Apply |
| 30-Year Fixed-Rate | 5.5% | Compare Rates |
| 15-Year Fixed-Rate | 5.25% | Compare Rates |
Overview of Rocket Mortgage
The YOURgageSM loan from Rocket Mortgage and Quicken is one of the more distinctive offerings you’ll come across on the mortgage market. These loans will allow you to finance as much as 97% of your home’s value, leaving you with a minimum down payment of just 3%. Add this in with the fact that you can choose a term from 8 to 30 years, and you’ve got an extremely customizable loan. As a matter of fact, you can even refinance with a YOURgage loan.
Although a mortgage opportunity like this might take the headlines, Rocket Mortgage also includes fixed-rate, adjustable-rate, jumbo, FHA, USDA and VA loans in its portfolio. Fixed-rate options come in 30- and 15-year terms, while ARMs are available in 5/1, 7/1 and 10/1 intervals. Once the 5-, 7- or 10-year initial payment period of your Rocket Mortgage ARM passes, your rate will follow the LIBOR index.
Jumbo loans are mortgages that are worth $647,200 or more, though Rocket Mortgage caps what they offer at $3 million. The company also requires a minimum credit score of 620 for approval, with rates only shown to you once you initiate the application process.
What Your Monthly Mortgage Payments Could Be With Rocket Mortgage
While the interest rate and APR of your Rocket Mortgage are an important part of determining how much you'll owe, the value of your home is also important in determining your monthly payment. Your home value can be used to determine your down payment, closing costs, loan amount and more. It's up to the person taking out a mortgage to determine how much of a down payment they'd like to make.
Here's what you're likely to pay over the life of a couple different mortgage options from Rocket Mortgage. There are lots of variables that go into accurately determining this number, so its reasonable to expect slightly different results.
| These payment calculations do not include homeowners insurance, property taxes or closing costs. | |||
| Mortgage | Interest Rate | Loan Size | Your Payments |
| 30-Year Fixed | 5.5% | $200,000 | $1,136/month for 30 years |
| 15-Year Fixed | 5.25% | $200,000 | $1,608/month for 15 years |
How Rocket Mortgage Compares to Other Lenders
Regardless of the style of loan, Rocket Mortgage seems to fall on the better half of the market when it comes to its interest rates. This is perhaps because it’s solely online and therefore can afford to have lower rates than lenders with many branches. This is especially true of U.S. Bank and Citimortgage. Check out the rate comparisons for yourself here:
| Mortgage | Rocket Mortgage | U.S. Bank | Bank of America |
| 30-Year Fixed | 5.5% | 5.875% | 5.625% |
| 15-Year Fixed | 5.25% | 5.132% | 4.625% |
Interest rates are an extremely important part of the mortgage search process, but they shouldn’t be all you take into account. So although all of the competing lenders above have their own mobile and online experiences, no one solely specializes in it like Rocket Mortgage. In turn, there aren’t many alternatives that do exactly what this lender can do.
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Refinancing With Rocket Mortgage
Rocket Mortgage has a number of different refinancing options, and they’re divvied up by your purpose for doing so. This could be to lower your monthly payments, consolidate existing debt, shorten your loan’s term length or get cash based on your home equity.
The federal government’s Home Affordable Refinance Program (HARP) is no longer available. The Freddie Mac Enhanced Relief Refinance Program (FMERR) and the Fannie Mae High Loan-to-Value Refinance Option were created to replace HARP, but FMERR expired in September 2019. That leaves Fannie Mae's program as the last available federal refinance option.
Should You Get a Mortgage from Rocket Mortgage?
Rocket Mortgage is a great lender, not only for those who want plenty of choices for a new mortgage or refinancing loan, but also for anyone who wants ample access to online and mobile app-based features. But if you’re someone that wants a more hands-on approach, this might not be the best pick for you.
As with many online lenders, those who wish to work with Rocket Mortgage must begin the application process to get a full view of their mortgage options. You might find this frustrating, as it may stifle your ability to compare rates and loan choices between various lenders from the get-go. In general, though, its interest rates and APRs are pretty solid. If you’re particularly interested in an ARM, Rocket Mortgage’s rates will be much more favorable.
Tips For Handling a New Mortgage
- The SmartAsset financial advisor matching tool is a great resource if you want to make sure a prospective mortgage will fit in neatly with the rest of your financial life. Simply fill out the questionnaire as accurately as you can, and you’ll be paired up with as many as three financial advisors who serve your area.
- It might be best to lower your costs for a few months when you initially get a mortgage. This will help you to truly gauge how these new loan payments will affect your overall financial life.
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